Earlier quoted context omitted.
Why? It's relatively common for governments to prohibit businesses and services from discriminating against certain types of users, why do you think it's ridiculous in this specific case?
Whether we like it or not, tracking data used for ads is the currency of the free internet. It is how things are paid for. This is like a government saying to a restaurant "You can't discriminate against people who don't want to pay you money for the food. You can ask them if they are willing to give you money for the sandwich, but if they say no, you still have to give them the sandwich"
Advertisers will still pay for ads even without the tracking.